Good morning. We're up till 3 o'clock last night finishing this advertising up. And I want to show it to you in a minute, see what you think of it. I've been back about eight to ten weeks and we've been working really hard.

And what we're trying to do is not something really highfalut.

We're trying to get back to the basics.

We're trying to get back to the basics of great products, great marketing, and great distribution. And I think that Apple has pockets of greatness,

but in some ways has drifted away from doing the basics really well. So we started with the

product line. We looked at the product roadmap going out for a few years, and we said a lot of this doesn't make sense. And it's way too much stuff, and there's not enough focus. And so we actually got rid of 70% of the stuff on the product roadmap. I couldn't even figure out the damn product line after a few weeks. I kept saying, well, what is this model? How does this fit? And I started talking to customers, and they couldn't figure it out either. And so you're going to see the product line get much simpler, and you're going to see the product line get much better. And there's some new stuff coming out that's incredibly nice. In addition, we've been able to focus a lot more on the 30% of the gems and add some new stuff in that it's going to take us in some whole new directions.

Apple is a company that has, doesn't have the most resources of everybody in the world.

And the way we've succeeded is by choosing what horses

to ride really carefully, technically. We try to look for these technical vectors that have a future

and that are headed up. And, you know, technology, different pieces of technology kind of go in cycles.

They have their springs and summers and autumns and then they go to the graveyard of technology.

And so we try to pick things that are in their springs.

And if you choose wisely, you can save yourself an enormous amount of work versus trying to do everything.

And you can really put energy into making those new emerging technologies be great on your platform,

rather than just okay because you're spreading yourself too thin. So we have a history of doing that. As an example, we went from the 5-inch floppy disk to the 3.5-inch floppy disk with the Mac.

Before other people, right?

We were the first to do that. We made the 3.5-inch floppy disk popular.

Sony invented it and we put it in the first products. And

there were some good reasons. We did that. We got rid of the floppy disk altogether in

1998 with the first iMac. We also got rid of these things called serial and parallel ports.

And we were the first to adopt USB, even though Intel had invented it.

You first saw it in mass on IMAX.

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